EPC Contract Research Articles

Risk Management in EPC Contract - Risk Identification

In this paper, we discuss the major risks identified in an EPC Contract which may affect the project. These are the practices as a part of risk management. The key benefits of this process is the documentation of existing risks and the knowledge and ability it provides to the project team to anticipate events. Risk identification is an iterative process, new risks may evolve or become known, as the project progresses through its life cycle. The frequency of iteration and participation in each cycle will vary by situation. The process should involve the project team so they can develop and maintain a sense of ownership and responsibility for the risks and associated risk response actions. Stakeholders outside the project team may provide additional objective information. A case study of construction of a Radial Intake well (an EPC Contract) for a Thermal Power Plant has

Financial Risks and Bankability In EPC Contracts

EPC contracts are the most common form of contract used to undertake construction works on large-scale. EPC Contractor has to deliver a complete facility for a guaranteed price by a guaranteed date and it must perform to the specified level. Failure to comply with any requirements will usually result in the contractor incurring monetary liabilities Risks allocation between the contractor and the project company that satisfies the lenders are bankable contracts. Lenders prefer for one strong party to accept full responsibility, delivering the works on time, on budget and to meet the required technical and performance specification. At times EPC contractors act as a consortium. The work is divided between the parties, such split / cooperation is encouraged keeping intact the efficiency and single point responsibility. The key driver for adopting a split structure is also the tax efficacy considering all financial risks as well. The EPC contract constitutes a large portion of the project cost. Therefore, apart from being satisfied that the project is financially viable, the primary interest of lenders during the pre-contract stage will be to ensure only well qualified credit worthy EPC contractors are considered.

The Engineering Insurance Mode Selection under the EPC Contract Conditions

The general contractors and owners face more risk in the EPC contract. But the people are usually used in international projects, and it has been applied in Chinese, the use of engineering insurance risk transfer, so choose the right insurance coverage critical to the promotion of the EPC contract. This paper by engineering insurance insuring the two modes: We analysis with the owners insured mode and contractors insured mode, that the contractor insured model is more suitable for the EPC contract, control more effective risk, and eventually reach the owners and contractors a common profits.

국내 토목산업의 설계-시공 균형발전 방안 도출에 관한 연구

In the recent global construction environment, EPC contracts that integrate planning, design, procurement, and construction have been widely used for industrial facilities. Similarly, as the importance of the engineering capability such as project management consulting(PMC) and front end engineering design(FEED) has been increased, design-build contracts also have been gradually adopted for infrastructure projects. Whereas, the Korean infrastructure industry has fragmentary features which mainly emphasize on the construction sector. Therefore, this study aims at developing strategies for enhancing the engineering capability and for balancing the competitiveness between engineering and construction sectors in the Korean infrastructure industry. To this end, the authors first carried out market analysis for both global and domestic market. Then, a structured survey and expert in-depth interviews were sequentially performed in order to reflect practitioners` perspectives and needs for institutional strategies. As a result, five strategies drawn from this study are as follows: 1) rearranging the government`s roles for supporting the engineering sector; 2) establishing institutional bases being compatible with global standards; 3) fostering value-added workforce for undertaking complex tasks; 4) constructing an consortium between an engineering association and general contractors; and 5) building a nationwide collaborative networks for overseas market expansion.

E105 石炭ガス化複合発電(IGCC)実証プロジェクトの進捗状況(OS6 高温・高効率発電),動力エネルギーシステム部門20周年,次の20年への新展開)

Integrated coal Gasification Combined Cycle system (IGCC) is higher thermal efficiency, since the system does combined power generation with product gas from gasifier. In Japan, the development of IGCC with the air-blown gasifier is being executed by electric power companies jointly. IGCC Demonstration Project is being promoted so as to demonstrate the reliability, durability and economical competitiveness as final step to commercialize. The project is being conducted by Clean Coal Power R&D Co., Ltd. (CCP). The fund and personnel for CCP are contributed by nine regional electric power companies, J-POWER, and CRIEPI. The EPC contract of the entire plant was ordered to Mitsubishi Heavy Industries, Ltd. (MHI). The durability test for 5000hours has been carrying out since June 2009. A sub-bituminous coal was tested in the plant and the power output using sub-bituminous coal reached 200MW.

S0801-1-2 石炭ガス化複合発電(IGCC)実証プロジェクトの進捗状況(IGCC/CCS)

Integrated coal Gasification Combined Cycle system (IGCC) is higher thermal efficiency, since the system does combined power generation with product gas from gasifier. In Japan, the development of IGCC with the air-blown gasifier is being executed by electric power companies jointly. IGCC Demonstration Project is being promoted so as to demonstrate the reliability, durability and economical competitiveness as final step to commercialize. The project is being conducted by Clean Coal Power R&D Co., Ltd. (CCP). The fund and personnel for CCP are contributed by nine regional electric power companies, J-POWER, and CRIEPI. The EPC contract of the entire plant was ordered to Mitsubishi Heavy Industries, Ltd. (MHI). June 2010, the durability test for 5000hours had finished within 1year. A sub-bituminous coal was tested in the plant and the power output using sub-bituminous coal reached 200MW.

C216 石炭ガス化複合発電(IGCC)実証プロジェクトの進捗状況(IGCC,蒸気タービン,OS7 高温・高効率発電)

Integrated coal Gasification Combined Cycle system (IGCC) is higher thermal efficiency, since the system does combined power generation with product gas from gasifier. In Japan, the development of IGCC with the air-brown gasifier is being executed by electric companies jointly. IGCC Demonstration Project is being promoted so as to demonstrate the reliability, durability and economical competitiveness as final step to commercialize. The project is being conducted by Clean Coal Power R&D Co., Ltd. (CCP). The fund and personnel for CCP are provided by nine regional electric power companies, J-POWER, and CRIEPI. The EPC contract of the entire plant was ordered to Mitsubishi Heavy Industries, Ltd. (MHI). The Demonstration Plant was completed in September 2007. The long term reliability test that exceeded 2000 hours, was succeeded in 2008, and tests on the thermal efficiency improvement and sub-bituminous coal were also carried out so far. In this report, the outline of the tests is described.

Barracuda and Caratinga Development Project

This article, written by Technology Editor Dennis Denney, contains highlights of paper OTC 17052, "Barracuda and Caratinga Development Project," by L.G.S. Messias dos Santos, Petrobras, originally prepared for the 2005 Offshore Technology Conference, Houston, 2-5 May. Copyright 2005 Offshore Technology Conference. Reproduced by permission. The Petrobras Barracuda and Caratinga project is a deepwater oil-production development in the Campos basin, offshore Brazil. The fields are in water depths of 600 to 1350 m and have reserves of approximately 1.75×105 m3 of oil and 12.5×109 m3 of gas. The project is being developed through a major turnkey engineering, procurement, and construction (EPC) contract. The EPC contract consists of converting two tankers into floating production, storage, and offloading (FPSO) units (the P-43 and P-48) capable of processing 2.385×104 m3/d of oil each; drilling and completing 54 wells; and developing the associated subsea system. This paper is an overview of the project. Introduction The Barracuda and Caratinga project was developed in two stages: a pilot system, followed by installation of the definitive system. The pilot system evaluated oil-production potential and gathered data characteristics of the reservoir and fluid properties. Operations began in September 1997 by exploring both fields through the P-34 FPSO. Eleven production wells from Barracuda and Caratinga fields were tied back to the FPSO, which had a liquid-processing capacity of 7.15×103 m3/d. This pilot system was demobilized in October 2002. The definitive system comprised the conversion of two very large crude carriers into two FPSOs: P-43 and P-48. In this stage, 54 wells were connected to these platforms through a subsea system. The development of the Barracuda and Caratinga definitive systems was combined into one unique project, and a single design was used to procure and build the twin FPSOs. Field Background As Fig. 1 shows, the Barracuda and Caratinga fields are 160 km east from Macaé (182 km northeast of Rio de Janeiro). The Barracuda field was discovered in April 1989, and the reservoir covers an area of 233 km2 with water depths ranging from 600 to 1100 m. The Caratinga field was discovered in February 1994, and the reservoir covers an area of 260 km2, with water depths ranging from 850 to 1350 m. The proven reserves are 1.675×105 m3 of oil equivalent, and the total reserves are 1.8125×105 m3 of oil equivalent, according to SPE criteria. The average specific gravity of the produced oil from these fields is 0.91 g/cm3. The pilot system provided oil-production estimates, gathered information to define the draining plan, and, hence, reduced the technical risks in the final conception. The pilot system also provided supplementary knowledge regarding the reservoirs, confirming information obtained from 3D-seismic and the exploratory wells. Use of the information and new technology reduced the number of wells needed from the predicted 129 vertical wells to 54 horizontal and multilateral wells.

Stone & Webster awarded NY EPC contract

Stone & Webster Inc has secured a US$570 million negotiated fixed price EPC contract from Astoria Energy LLC for Phase I of a 1000 MW power project in New York City. Visit www.filtsep.com for the latest filtration industry news

Stone & Webster awarded NY EPC contract

Stone & Webster Inc has secured a US$570 million negotiated fixed price EPC contract from Astoria Energy LLC for Phase I of a 1000 MW power project in New York City. This is a short news story only. Visit www.worldpumps.com for the latest pump industry news.

CB&I wins EPC contract for LNG terminal expansion

CB&I has been awarded a US$90 million lump-sum turnkey contract for a liquefied natural gas (LNG) terminal expansion project near Savannah, Georgia, USA. This is a short news story only. Visit www.filtsep.com for the latest filtration industry news.

Shaw, JGC sign Chinese EPC contract

Eimeria parasites were isolated from Nanhai Guangdong province (southern China) and studied in chickens in wire cages to evaluate their drug resistance against commonly used ionophores: monensin (100 mg/kg of feed), lasolacid (90 mg/kg), salinomycin (60 mg/kg), maduramicin (5 mg/kg) and semduramicin (25 mg/kg). Chinese Yellow Broiler Chickens were infected with 40,000 crude sporulated Eimeria oocysts at 15 days of age and prophylactic medication commenced a day prior to infection. Drug resistance was assessed for each ionophore drug by calculating the anticoccidial index (ACI) and percentage optimum anticoccidial activity (POAA) based on relative weight gain, rate of oocyst production and lesion values. Results revealed that Nanhai Eimeria oocysts comprising of E. tenella, E. maxima and E. acervulina, were resistant to monensin, sensitive to both salinomycin and lasolacid and partially sensitive to maduramicin and semduramicin. By selection for early development of oocysts during passage through chickens, the prepatent time of E. tenella, E. maxima and E. acervulina were reduced by 49, 36 and 22 h, respectively. The precocious lines are less pathogenic than the parent strains from which they were selected and conferred a satisfactory protection for chickens against coccidiosis. These ionophore-tolerant precocious lines could have wider applications in the development of anticoccidial vaccines for sustainable control of coccidiosis.

Shaw, JGC sign Chinese EPC contract

Zooplankton is an important link between phytoplankton and higher consumers in the marine food chain. To investigate the harmful effects of the toxic dinoflagellate Alexandrium species on zooplankton, 4 strains of Alexandrium spp., isolated from the Chinese coast, were used to test the species' effects on the survival and feeding rates of the brine shrimp, Artemia salina. The experiment was designed to assess the response of A. salina in each stage of its life cycle: nauplii, metanauplii, and adult. Each experiment was conducted in a 500 ml treatment that was added. The toxic treatments consisted of single strains of A. minutum, A. catanella, and A. tamarense (Nanhai and Donghai strain), while non-toxic species (dinoflagellate Prorocentrum donghaiense and diatom Chaetoceros minutissimus) were used as control treatments. An additional phytoplankton treatment consisted of, a mixture of A. tamarense (Nanhai strain) and P. donghaiense. Alexandrium spp. species were found to have lethal effects on the brine shrimp at a density of 2000 cells/ml. All the brine shrimps died within 24-168 hours of inoculation with the 4 treatments each containing single toxic Alexandrium species. During the feeding experiment, toxic Alexandrium spp. caused a reduction in the feeding rates in all the three stages of the life cycle of A. salina, whereas this response was not obvious in the treatment involving the nontoxic species P. donghaiense. The body surface of the brine shrimp that were fed on Alexandrium species was consistently covered by a sticky floc. Mortality of A. salina was observed to increase with the occurrence of the floc. The toxicity of the paralytic shellfish poisons (PSP) produced by the Alexandrium species was not significantly correlated with the survival or the feeding rate of the brine shrimp. When A. tamarense was mixed with P. donghaiense, the lethal effect of A. tamarense decreased, as shown by an increase in the survival and the feeding rates of the brine shrimp. A. salina metanauplii were found at the life stage most sensitive to the toxic algae and hunger. In summary, toxic Alexandrium spp. were found to have lethal effects on A. salina and to restrain the brine shrimp's feeding rate. Nontoxic Prorocentrum mitigated the toxicity of Alexandrium to a certain extent. The results also imply that the sticky material on the surface of the body of the brine shrimp may have been an important lethal factor rather than the PSP toxins.

EPC Contract Pricing Considerations for Combined Cycle Power Projects

EPC Contract Pricing Considerations for Combined Cycle Power Projects